IMF slightly cuts South Africas 2012 GDP growth outlook to 2.6%.

By bne IntelliNews August 27, 2012
South Africas economic growth is expected to ease to 2.6% this year from 3.1% in 2011 amid weak external conditions and increased global uncertainty, the IMF said in a report following a regular mission to the country. The IMFs earlier estimate was for a 2.7% GDP growth in 2012. The fund also lowered its expectations for next year, when the countrys economy should grow by 3.4%, slower than the previously expected rise of 3.6%. Yet, the IMF expects the growth to gradually recover over the medium turn to its potential rate of about 3%. The high unemployment rate is said to be one of the key domestic risks to economic growth and according to the IMF a sustainable improvement cannot be attained without labour and product market reforms. The local authorities should boost employment and improve infrastructure and public services, while preserving macroeconomic and financial stability. According to the IMF, South Africas financial sector remains sound, liquid, and profitable.
2011 2012 estimate
Real GDP (% change) 3.1 2.6
CPI (in %) 6.1 5.4
Unemployment rate (%) 24.9 22.7
Broad money 2 (% change) 8.3 9.9
National government budget balance (% of GDP) -5 -4.8
National government debt (% of GDP) 38.7 40.2
External current account balance (% of GDP) -3.3 -4.8
External debt (% of GDP) 27.3 32
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